They’re not sexy, they’re not exciting; however, a traditional, thirty year mortgage with a fixed interest rate is the mortgage your grandparents had. Find out more about the safety and stability offered by these plain, vanilla mortgages.
Traditional thirty year mortgage loans are nearly as exciting as watching paint dry. These loans, while boring, have strong advantages in today’s economy. Here is why you should consider a traditional mortgage over today’s riskier mortgage offerings.
Traditional mortgages are simply fixed interest rate loans with durations of 15 to 30 years. These mortgages have been around since the dawn of time; these mortgages offer safety and stability because the interest rate is fixed. Your monthly payment will not go up when interest rates do. You have the piece of mind in knowing what your monthly mortgage payment will be month in and month out.
Even though your interest rate is fixed, there are other factors you should be aware of that could cause your monthly payment to go up. If your mortgage lender requires you to make your monthly payment to an escrow account, and this payment includes your property taxes and insurance, your payment will go up whenever the taxes and insurance do. Mortgage lenders require homeowners to use escrow as a way to protect their investment; if you are a first time homebuyer or need a bad credit mortgage the lender may require your payments to be handled by an escrow company.
To learn more about finding the right mortgage and avoiding common mortgage mistakes, register for a free mortgage guidebook.
To get your free mortgage guidebook visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.
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Chicago Mortgage Refinance
